• Oil: an overview of the market situation

Market news

12 March 2014

Oil: an overview of the market situation

Oil prices fell markedly today , reaching at this month low (mark WTI), which was associated with the publication of a report on oil reserves in the United States.

Department of Energy data on changes in stocks in the week March 3-9 showed

- Oil reserves rose by 6.18 million barrels to 370.002 million barrels ;

- Gasoline inventories fell by 5.23 million barrels . to 223.766 million barrels . ;

- Distillate stocks fell by 0.533 million barrels . to 113.943 million barrels .

- Refining capacity utilization rate of 86.0 % against 87.4 % a week earlier ;

- Oil terminal in Cushing and decreased by 1.341 million barrels . to 30.791 million barrels .

We also recall that yesterday its inventory report presented Petroleum Institute API: He showed :

- Capacity utilization in the week 86.5% against 86.8%

- Distillate stocks last week -0.839 million barrels

- Gasoline inventories last week -2.15 million barrels

- Oil reserves for the week 2.63 million barrels

Add that control to the U.S. Energy Information (EIA) downgraded several forecasts for growth of oil production in the country for 2014 and 2015 . Consumption of raw materials in the current year that will remain at last year's level, and the next year - will grow by 0.3% , the report said the agency. According to the expectations of EIA, the average production volume of "black gold " in the United States in 2014 is 8.39 million barrels a day compared with the previous forecast of 8.42 million barrels . In 2015, production amounted to 9.16 million barrels instead of the expected 9.19 million barrels previously . At the same time , despite the worsening prognosis indicators remain well above last year's level to 7.45 million barrels per day.

Meanwhile , we note that today the organization of Petroleum Exporting Countries (OPEC ) in the second consecutive month raised its forecast for growth in oil demand . At the same time, the cartel still warns of possible negative factors associated with emerging markets .

In its monthly oil market forecast by the cartel raised its forecast for growth in oil demand this year by 50,000 barrels per day. Last month, OPEC raised its forecast in the same way . Now OPEC suggest that oil demand this year will grow by 1.14 million barrels per day largely due to the increase in consumption in North America , as well as due to improved demand in Europe and Africa . Overall demand for oil on the basis of 2014 is estimated at 91.1 million barrels per day . At the same time, a key factor influencing the increase in world oil demand growth will be in developing countries , said the OPEC.

April futures price for U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $98.34 a barrel on the New York Mercantile Exchange (NYMEX).

April futures price for North Sea Brent crude oil mixture fell 7 cents to $ 108.27 a barrel on the London exchange ICE Futures Europe.

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